Cinema United, formerly the National Association of Theater Owners, submitted a statement to the Senate Judiciary Subcommittee on Antitrust, Competition Policy & Consumer Rights, warning that the $83 billion Netflix-Warner Bros. merger could have “economically and culturally catastrophic” effects on theaters and the broader movie industry.

The organization emphasized that consolidation under a single streaming giant could reduce theatrical releases, shorten exhibition windows, and limit revenue for theaters and surrounding businesses. “The number of films being produced for theatrical exhibition is slowly returning to pre-2019 levels. However, that growth is threatened by further consolidation,” the statement read.

Cinema United also cautioned that the concerns are not limited to Netflix. A potential Paramount acquisition of Warner Bros., for example, could consolidate as much as 40% of the domestic box office under a single studio, the group said. The organization stressed that a diverse production pipeline is essential to sustaining the film industry and responding to consumer demand.

The statement referenced past industry consolidation, noting it historically leads to fewer movies being produced and that Netflix’s long-standing views on theaters amplify the risk. “We must heed the lessons of the past: further industry consolidation has consistently led to fewer movies being made, and there is no reason whatsoever to believe the outcome here would be any different,” Cinema United wrote.

Netflix co-CEO Ted Sarandos testified before Congress this week, defending the merger as a way to compete with other major tech companies in entertainment, including Google’s YouTube, Apple, and Amazon Prime Video. Sarandos argued that the merger would strengthen the American entertainment industry, expand consumer choice, and offer more opportunities for creators, citing Netflix’s creation of 155,000 jobs nationwide and $225 billion in economic contributions over the last decade.

Sarandos added that Warner Bros. would continue operating largely as it does today, and the combined content libraries from Netflix and HBO Max would provide more value to customers. He noted that the combined service would capture roughly 21% of the U.S. premium streaming market, still trailing competitors like YouTube.

The Senate subcommittee is reviewing the potential impacts as the merger continues through regulatory scrutiny, with theater owners urging lawmakers to consider the consequences for jobs, film production, and local communities.